China to update AML rules with a focus on crypto transactions

ClearVue Partners-Backed Crypto Startup Fund Closed at $50MThe CVP NoLimit Fund I, a crypto-centric fund established by China’s ClearVue Partners, a private equity specialist, has been closed out, reaching a funding level of $50 million.Photo by micheile henderson on UnsplashFunding target achievedThe closing of the fund was announced recently by No Limit Holdings, an investment partnership specializing in global crypto assets based in Malta. ClearVue had entered into a joint venture with No Limit Holdings in order to establish the fund. No Limit Holdings was founded by former Binance Chief Strategy Officer Gin Chao. Partnering with Chao in that venture is another former Binance executive, Anatoly Kondiyakov, who served as Binance’s Head of APAC Institutional Sales in Singapore for four years.News of the fund first emerged in October 2022, when the fund promoters started to distribute a pitch deck. It’s understood that the fund was targeting investment into layer one blockchains prior to their native tokens going live.Chao made the following statement relative to the closing of the fund:“We are grateful for the confidence and trust that our partners have placed in us for this first fund, particularly given the breadth of industries our LP base represents and the challenging macroeconomic conditions during this period. At the same time, this has created an ideal window to deploy capital into the exciting opportunities that the current market presents.”Web3 “where the Internet was in the late 90s”ClearVue Partners Founder, Harry Hui, said that the firm was “excited to team up with Gin and the NLH team. They have deep sector expertise and an incredible track record of success.” Hui added that “Web3.0 is where the Internet was in the late 90s and as blockchain adoption increases, we believe there will be significant value creation for both for our investors as well as for our consumer and technology portfolio companies.”The CVP NoLimit Fund I has already invested in more than twenty crypto projects located globally. Two of them have been listed on multiple digital asset exchanges. Meanwhile, the fund’s administrators have suggested that it has established a robust pipeline of investible projects, and that it has the expectation to invest in an additional twenty projects over the course of the next twelve months.Seed-stage focusThe fund has been focusing on early-stage projects and strategic funding rounds, with individual investments of between $250,000 and $3 million. Some of the projects it has backed thus far include Binance.US, crypto and blockchain infrastructure firm Mysten Labs, Singapore-based dApp developer Hogwarts Labs, Connext Labs which claims to be the HTTP of Web3, and decentralized digital asset money market, IQ Labs.Venture capital investment into the crypto and Web3 space broke all records during the last crypto bull market. Naturally, it has suffered a huge decline in its wake. However, the closing out of this $50 million fund demonstrates that ultimately new money will return to the sector.This is further exemplified by a recent announcement by Kraken Ventures, the venture investment wing of the well-known crypto exchange business, setting out that it is raising a second $100 million fund, earmarked for investment within the sector.

Report Reveals Global Trends and Online Discourse on Crypto Travel RuleCODE, the only Travel Rule solution provider in South Korea, together with blockchain consulting firm Catalyze Research, published a report that sheds light on global trends in Travel Rule legislation and popular online keywords associated with the Travel Rule. The Travel Rule is a set of guidelines that virtual asset service providers (VASPs) and financial institutions are obligated to observe in order to counteract money laundering and terrorist financing. These guidelines require these entities to share information about both the sender and the recipient of cryptocurrency or financial transactions.The authors of this report gathered online comments related to the Travel Rule from January 1, 2019 to July 31, 2023. They conducted this analysis across news outlets, media platforms, online forums, and various social media channels, encompassing over 200 countries and 150 languages.Photo by Volodymyr Hryshchenko on UnsplashKey events driving discussionsAccording to the report, online discussions concerning the Travel Rule intensified around the time of several key events. These events include the enforcement of the Travel Rule in South Korea in March 2022, the approval of the Markets in Crypto-Assets Regulation (MiCA) and Transfer of Funds Regulation (TFR) by the European Union in April 2023, endorsements of the Travel Rule by G7 countries in Japan in May 2023, and the subsequent implementation of the Travel Rule in Hong Kong and Japan in June 2023.Notably, South Korea, Japan, and France experienced the most substantial surges in Travel Rule-related discussions during the first half of 2023. In South Korea, comments were prompted by a lawmaker’s scandal related to cryptocurrency trading. Meanwhile, Japan and France observed a rise in comments linked to the enforcement of their respective local Travel Rule regulations in the second quarter.Negative market responsesIn addition, markets responded more negatively than positively to the tightening of Travel Rule regulations. The concerns about the market contraction were stronger than the positive outlook on the advantages of preventing money laundering.Lee Sung-mi, CEO of CODE, highlighted the growing significance of Travel Rule solution providers in ensuring the compliance of virtual asset service providers (VASPs) with the regulatory demands of various jurisdictions. Particularly, with the Financial Action Task Force (FATF), G7 nations, and the EU at the forefront, countries have been making noteworthy strides in Travel Rule implementations since 2023, she further noted. Lee emphasized CODE’s commitment to aiding its member VASPs in adhering to Travel Rule regulations by delivering secure and convenient services that align with the evolving global regulatory landscape.

Bitgamo Set to Launch 150 Crypto ATMs in AsiaIn a press release published on Monday, Luxembourg-registered crypto startup Bitgamo outlined its intention to roll out crypto ATMs across Asia.Photo by Monstera Production on PexelsAsian network rolloutDescribing itself as a no KYC (Know Your Customer) exchange for crypto-to-fiat transactions, the firm has the intention of embarking on a crypto expansion initiative that will see it deploy 150 crypto ATMs across key Asian markets.The press release quotes “official sources” as having confirmed that these crypto ATMs will be operational across the region by February 2024. The firm intends to locate the machines within markets such as Australia, Japan, Hong Kong, and Indonesia.European expansionIn alignment with its growth strategy, Bitgamo has also unveiled plans to introduce an additional 75 cryptocurrency ATMs across Europe over the course of 2024.Founded in 2020, Bitgamo claims that its objective is to address privacy concerns while promoting the adoption of cryptocurrencies in regions where acquiring and holding digital assets can be challenging.Gabriel Weber, the company’s Director of Communications, expressed his excitement about the expansion initiative. He stated:“We are thrilled to be able to offer this innovative service in Australia, Japan, Hong Kong, and Indonesia. The addition of our ATMs will make it super easy for users to sell crypto, and we are confident that they will be valuable resources for the thriving crypto communities in these countries.”No KYCThe crypto exchange and ATM business claims to offer a no KYC exchange policy, which sets it apart in an increasingly regulated landscape. As a Luxembourg-registered entity, Bitgamo classifies cryptocurrencies as commodities, adhering it says, to the legal framework of its home country.While the convenience of a no KYC approach is evident, it appears to be going against the current trend and recent regulatory pressures. Earlier this year Seychelles-based cryptocurrency exchange KuCoin implemented mandatory KYC. Bitget, another Seychelles-based exchange, followed suit earlier this month, while another Asia-centric exchange, OKX, has tightened its KYC policy.Online concernBitgamo isn’t well known and with that, this recent announcement has sparked some in the crypto community to express doubt. One individual on crypto-Twitter wrote: “This is a scam…don’t fall for it!” . . . “Raising awareness as their paid press releases are currently doing the rounds, trying to lure in victims.”Meanwhile, a YouTuber called “Negocios TV” urged caution relative to what it described as a possible scam. It’s certainly true to say that there’s very little information in the public sphere relative to Bitgamo and with that, market participants will need to do their own due diligence. Equally, we are not aware if these concerns are real or misplaced.If the offering is in fact legitimate, then it’s a very positive development. Crypto ATMs have often acted as the first touch-point for many individuals in accessing digital currency. Recent years have seen a considerable increase in the global network of crypto ATMs, offering those who want to onboard into the crypto sphere easy access to doing so and possibly purchasing their first digital currency.